Cookies are temporary files we place on your device to improve your user experience, for example to sign up and log in to your account. Find out more about cookies, and how to control them, in our privacy policy. By continuing to use our site, you agree to this policy

A decade on from the financial crisis, many small and medium-sized enterprises (SMEs) continue to struggle to secure the business loans they need to grow. SMEs are the powerhouse of the British economy, making up more than 99% of the business population and accounting for some 60% of all private sector employment.

Despite their importance to the economy, just 24% of business owners feel that credit is readily available, according to the Federation of Small Businesses.

HM Treasury has acknowledged that SMEs tend to approach their main bank when seeking a business loan “and that, if rejected, many simply give up rather than seek alternative options”.

Alternative sources of funding are available. Fintech lending platforms such as LendingCrowd enable investors to combine their resources and lend directly to small businesses, speeding up the financing process and helping to bridge the SME funding gap.

LendingCrowd, which launched in 2014, offers fast and flexible business loans from £5,000 to £500,000 for every type of small business – including sole traders, partnerships and limited companies. Loans can be for any business purpose, except for property development or property investment. To be eligible, your business must have been trading for at least two years and have a turnover of at least £100,000 a year.

Funding ambitions

Adrian Innes, our Head of Origination, said: “LendingCrowd was created to fund the ambitions of small businesses that have been let down by a market that is dominated by a handful of large banks. We combine cutting-edge technology with decades of experience across our team to provide SMEs with affordable business loans that will help them to develop and grow.

“A quarter of respondents to a survey of LendingCrowd borrowers said they believed that they would have been very unlikely to obtain funding if we didn’t exist. A failure to secure funds from elsewhere would have had a negative impact on employment and investment in the business. LendingCrowd helps to create opportunities, jobs and futures.”

Once our expert Credit Team approves your loan application, they will allocate it with a Credit Band from A+ to C+ and we will place your loan on our marketplace once we have all the information we need. Investors then compete to finance your business loan, bidding in our loan auction to invest in you and your plans.

In our next blog post, we’ll go into more detail about applying for a business loan through our innovative online platform. It takes just 15 minutes to apply and we aim to make a decision within 24 hours. Loan auctions typically last one or two days. Once you accept the loan terms and we have your completed paperwork, the funds could be in your account the same working day.

It’s time to take your business further. It’s time to Think Outside The Bank.

If you invest through LendingCrowd you should understand that your capital is at risk.

LendingCrowd is the trading name of Edinburgh Alternative Finance Limited, Company Number SC468392, authorised and regulated by the Financial Conduct Authority (Firm reference number 670991). LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.